Deals
About 40 percent of car rental customers in Sofia, Bulgaria ask this common question:
Here are six reasons why car rental companies hold a deposit:
Car rental insurance is different, and therefore, policies and restrictions vary in each country.
In Bulgaria, for example, insurance rate for car rental businesses is 50% higher than one for regular consumers.
The insurance companies do not cover most of the following parts: rims, tires, rim covers, antennas, wipers and etc. In order to maintain its fleet in perfect condition, the car rental company must charge the customer, in case there is a damage to those parts, if additional insurance is not purchased.
Second, each insured car has a cap amount for damages per year, and once the limit is reached, the car rental company needs to cover the damages of the vehicle.
Administrative fee - in order to file claim, an employee needs to spend almost an entire day of work at the insurance company, therefore companies need to pay for extra labor.
Opportunity cost - when there is a damage to the car rental, the company cannot use the car for at least a week or two, in order to fix it. During this period, the car can’t be at use, and thus the company is losing money.
Excess amount – in case of a total loss, it could take up to 2 months for the insurance companies to finish the claim, furthermore they pay not more than 80% of the total cost of the car.